Buying a foreclosure???

Hey all, I'm looking at houses and there's one I really like, but it's in pre-foreclosure. According to the website, the notice has been served and it's up for auction next month.

I don't know anyone with buying a foreclosure experience. What are the options? Do these even go to auction? How does the auction work?

If anyone can give me any insight whatsoever, I'd sure appreciate it.

 

All the foreclosures I have dealt with the bank has had reserve set on the auction, usually the amount of the mortgage plus the auction house fees. If it doesn't sell it can go too a short sale but that process is beyond stupid. You can wait months to hear back about your offer just to decline it then another couple weeks for the counter offer. The upside if you have time you can save a lot of money sometimes, also the longer the house is on the market the more motivated the bank becomes.

 

I have listed and sold many foreclosures.

Be patient and remember you are exchanging your headache for a much smaller purchase price.

 

I bought a foreclosure a couple years ago, the bank had been sitting on it for a couple years. Got a heeelllll of a deal!!

 

This one in particular is still in pre-foreclosure with an auction date set, but it's been online for months. If the estimate is correct, it's going to be a good deal.

 

Do you get a chance to go through the house before you buy it?

 

It's a headache. However, it can be worth it.

I saved my house from sherriff sale. It's when the taxes were back due for 3+ years. It would have been up to auction in September. When they go to auction sometimes they sell, sometimes they don't. Foreclosures usually need some "unseen" work. But, like others have said - you can get one heck of a deal. Is it currently listed with a bank realtor? I looked at a few foreclosures when we were house shopping. When they go up to auction you usually cannot see in them. Have you done a walk around the property?

 

Very true! However you most often will still be $$$$ ahead if the price is right.

 

We bought a foreclosure last October. The house ended up being almost 200k less than it was purchased new and we have put about 20k into it. We waited while it was in press foreclosure until the bank kicked out the family and the fixed it up and listed it. I would do it again in a heartbeat as the process was relatively painless and the price was great.